A Telecom Stock With a Supersized Dividend

CenturyLink trails AT&T and Verizon in size and name recognition. But its business prospects and 7.4% yield can't be ignored.

CenturyLink is the third-largest telecommunications provider in the U.S. by market cap behind AT&T and Verizon, but it pays out the best dividend yield of the three by far: 7.4%.

With fear of rising taxes on such a juicy yield, shares of CenturyLink (ticker: CTL) have sold off about 8% since Aug. 31. That compares to flat returns for the Standard & Poor's 500 index, an 8% decline for AT&T (T) and a roughly 4% rise for...